Settlement day in NSW: what happens and what to expect
Settlement day is the final step in a property transaction. For most buyers and sellers in New South Wales, it happens electronically through the PEXA platform. Here is what actually occurs, what time it happens, and what you need to do (or not do) on the day.
General information about property settlement in NSW. It is not legal advice. For advice about your specific settlement, speak with your licensed conveyancer or solicitor. About our editorial standards.
What settlement is
Settlement is the legal completion of a property sale. On settlement day:
- The balance of the purchase price is paid by the buyer (or their lender) to the vendor.
- The vendor's mortgage (if any) is discharged, and the title is released.
- Ownership is transferred and registered at NSW Land Registry Services.
- The buyer becomes the legal owner of the property.
In NSW, settlement is set by the contract of sale. The standard NSW residential settlement period is 42 days after exchange of contracts, though the parties can agree to a shorter or longer period. This is set out in the contract.
Settlement is separate from exchange. At exchange of contracts, contracts are signed and the sale becomes legally binding. At settlement, ownership and money change hands.
How PEXA electronic settlement works in NSW
Since 2018, NSW has required most residential property transactions to settle electronically through the PEXA (Property Exchange Australia) platform. Paper settlements still occur in limited circumstances, but electronic settlement is the standard.
In a PEXA settlement:
- All parties' conveyancers (and their banks, if mortgages are involved) join a shared digital "settlement workspace" on the PEXA platform.
- Settlement figures are agreed and verified in the workspace in the days before settlement.
- On settlement day, the buyer's bank releases the purchase funds electronically.
- PEXA automatically pays the vendor's proceeds (including any mortgage payout) from those funds.
- The transfer documents and discharge of mortgage are lodged electronically with NSW Land Registry Services at the same moment.
- The Land Registry records the new ownership. Settlement is confirmed.
The whole process is automated and simultaneous. Funds and title transfer at the same instant, which eliminates the risk of a party receiving payment without title transferring, or vice versa.
Neither buyer nor seller typically attends settlement in person. Your conveyancer manages the process in the background.
Settlement day timeline
A typical settlement day in NSW looks like this:
| Time | What is happening |
|---|---|
| Morning | Conveyancers and banks confirm final figures in the PEXA workspace. Any last-minute adjustments (such as council rate adjustments for the settlement date) are finalised. |
| Booked time slot (typically 9am - 3pm AEST) | PEXA processes the settlement: funds are released by the buyer's bank, transferred to the vendor, and title documents are lodged simultaneously with the Land Registry. |
| Shortly after the booked time | Conveyancers receive confirmation that settlement has completed. Your conveyancer notifies you. |
| 1-3 hours after settlement confirmation | Keys are handed over, typically via the selling agent. Some agents require you to collect from their office; others will confirm the vendor has left and the property is ready. |
The exact booked time is agreed by all parties' representatives in advance. If your settlement is booked for 11am, expect confirmation and key handover around midday if everything proceeds smoothly.
What happens in your situation?
Most NSW settlements go smoothly. But searchers typically arrive with a specific worry. Here is what usually happens in the six most common scenarios:
| Your situation | What usually happens | What you should do |
|---|---|---|
| Everything goes to plan | Settlement completes at the booked time via PEXA. Your conveyancer notifies you. The selling agent releases keys within a few hours. | Stay contactable on the day. Do not access the property until your conveyancer confirms completion. |
| Your bank is not ready on time | Settlement cannot proceed without loan funds. Your conveyancer contacts the vendor's conveyancer to request a time extension or a short postponement. Under the standard NSW contract, the vendor may charge penalty interest on the outstanding amount for each day of delay. | Contact your lender immediately. Ask your conveyancer whether a short extension can be agreed. Do not wait -- penalty interest accrues from the original settlement date. |
| Pre-settlement inspection reveals a problem | If an inclusion is missing (appliance, curtain rod) or damage has occurred since exchange, your conveyancer can raise it with the vendor before settlement is confirmed. Options include a price adjustment, a retention held in trust, or deferring settlement to allow rectification. | Contact your conveyancer immediately and do not leave the inspection without documenting the issue (photos). Do not proceed to settlement without a written resolution from the vendor's conveyancer. |
| The vendor has not vacated on settlement day | Vacant possession is a term of the standard NSW contract. If the vendor has not vacated by settlement, you may have grounds to delay settlement or pursue the vendor for breach. Your conveyancer can serve a notice. | Contact your conveyancer before collecting keys. Do not enter the property while the vendor or their belongings remain. This is a matter for your conveyancer to resolve, not a confrontation for you to manage directly. |
| You want to move in on settlement day | You can move in on settlement day -- but only after settlement is confirmed and keys are in your hands. Book removalists for the afternoon (not the morning) as settlement timing cannot be guaranteed. If settlement is delayed even by a few hours, morning removalists may not be usable. | Tell your removalists that access is conditional on settlement confirmation. Plan to collect keys from the agent mid-afternoon and have a backup plan if settlement is delayed to the next business day. |
| Settlement is postponed to another day | Postponement requires agreement from all parties (buyer, seller, both banks). If one party refuses or fails to settle, the other may serve a "notice to complete" under the contract, setting a new date and making time of the essence. Failure to comply with a notice to complete can entitle the innocent party to terminate and claim damages. | Contact your conveyancer immediately. If the delay is not your fault, ask about your right to penalty interest and whether a notice to complete is appropriate. Keep written records of all communications. |
Scenarios are based on the standard NSW Contract for Sale of Land (2026 edition), settlement and notice-to-complete provisions. This is general information only, not legal advice. Speak with your conveyancer about your specific circumstances.
When do you get the keys?
Keys are not handed over until settlement is confirmed. In most NSW transactions, the selling agent holds the keys and releases them once they receive confirmation from the vendor's conveyancer that settlement has occurred.
The key handover process is typically:
- PEXA confirms settlement is complete.
- The vendor's conveyancer notifies the selling agent.
- The selling agent notifies the buyer (or buyer's agent) that keys are available.
- The buyer collects the keys from the agent's office or the property itself (depending on the arrangement agreed at exchange).
Do not arrange removalists or plan to access the property before you receive confirmation from your conveyancer that settlement has completed. Accessing the property before settlement is a breach of the contract.
The pre-settlement inspection
As a buyer, you are entitled to conduct a pre-settlement inspection of the property in the 24 to 48 hours before settlement. This is a legal right under the standard NSW contract of sale. Do not skip it.
The purpose of the pre-settlement inspection is to confirm:
- The property is in the same condition as at the time of exchange (no new damage).
- All fixtures and chattels included in the contract are present (kitchen appliances, light fittings, curtain rods, pool equipment, and any other listed inclusions).
- The vendor has vacated (if the property is to be delivered vacant on settlement).
- No rubbish or items have been left behind that were not agreed to remain.
If you find a problem during the pre-settlement inspection, contact your conveyancer immediately. They can raise the issue with the vendor's conveyancer and, if the problem is material, negotiate a solution before settlement is completed. Options include a price adjustment, a retention of part of the purchase price pending a fix, or deferring settlement.
Arrange the pre-settlement inspection through the selling agent, who will coordinate access.
What can delay or derail settlement
Most NSW property settlements proceed without incident. Common reasons settlements are delayed or postponed include:
- Bank not ready: The buyer's lender has not fully processed the loan in time, or the settlement figures have not been received and approved. This is the most common cause of delay.
- Figures discrepancy: A discrepancy in council rate adjustments, water rates, or other adjustments between the parties' calculations.
- Property chain: The vendor is simultaneously purchasing another property and their own settlement is delayed, preventing them from having their mortgage discharged in time.
- Documentation errors: A missing signature, an incorrect name, or a mismatch in the documents submitted to PEXA.
- PEXA technical issues: Rare but possible. PEXA has its own contingency procedures for system outages.
If settlement cannot proceed on the agreed date, the contract determines the consequences. Under the standard NSW contract, a party who fails to settle on time may be liable to pay penalty interest to the other party. Time is generally "of the essence" for settlement in NSW standard contracts.
Your conveyancer will communicate with all parties if a delay arises and advise you of your options. Do not attempt to contact the other party directly.
Buyer checklist for settlement day
- Confirm with your conveyancer that settlement is proceeding and at what time.
- Complete the pre-settlement inspection in the 24-48 hours before (contact the agent to arrange).
- Confirm your loan funds are approved and your bank has received the final settlement figures.
- Have a way to be contacted on the day (phone, email) so your conveyancer can reach you.
- Arrange key collection: confirm with the agent where and how to collect.
- If you are moving in on settlement day: do not book removalists for early morning; wait for settlement confirmation first, then coordinate timing.
- Have your proof of identity ready to collect keys from the agent.
Seller checklist for settlement day
- Vacate the property (if selling vacant possession) by the agreed time on settlement day.
- Leave all keys, garage remotes, and access devices (mailbox keys, intercom fobs) for the buyer.
- Remove all personal property not listed as an inclusion in the contract.
- Leave all fixtures and inclusions listed in the contract (appliances, curtains, light fittings, pool equipment).
- Ensure your mortgage documents have been submitted to your bank in advance so the discharge is ready.
- Confirm your bank account details with your conveyancer so the net proceeds can be paid to you.
What happens after settlement
After settlement, your conveyancer will:
- Confirm settlement is completed and notify you.
- Advise you to update your address for council rates, water, and utilities.
- Provide you with the title documents (or confirm that your lender holds them if you have a mortgage).
As a new owner, contact your local council to update the rate notice address. Contact Sydney Water (or the relevant water authority) and your electricity and gas providers to transfer accounts from the settlement date.
Your stamp duty (transfer duty) will have been paid by your conveyancer at or before settlement as part of the PEXA process. The receipt will be provided to you.
Enjoy a same-day response
Talk to a qualified conveyancer and solicitor
Tell us about your matter and we will pass your details over to independent legal partners who can be in touch within 24 hours.
Common questions
What happens on settlement day in NSW?
On settlement day, the buyer's bank releases the balance of the purchase price via the PEXA electronic platform. Funds are paid to the vendor, the vendor's mortgage is discharged, and the property title is transferred and registered in the buyer's name. The buyer's conveyancer notifies them that settlement is complete, and the keys are then released by the selling agent.
What time does settlement happen in NSW?
PEXA settlements are booked for a time slot between 9am and 3pm AEST. The exact time is agreed between all parties' representatives. Confirmation and key handover typically follow within one to three hours of the booked settlement time.
What can delay settlement in NSW?
The most common causes of settlement delay are: the buyer's bank not having funds ready on time; a discrepancy in the settlement figures; a chain delay (vendor waiting on their own settlement); documentation errors; or PEXA technical issues. Your conveyancer will manage any delays and advise you of your options.
What do I need to do as a buyer on settlement day?
Complete the pre-settlement inspection 24-48 hours before. Confirm your loan funds are ready. Be contactable on the day. Do not arrange access or removalists until your conveyancer confirms settlement has completed. Collect keys from the selling agent once confirmation is received.
What is a pre-settlement inspection?
A pre-settlement inspection is a walkthrough of the property by the buyer in the 24-48 hours before settlement. It confirms the property is in the same condition as at exchange, that all contract inclusions are present, and that the vendor has vacated. Contact the selling agent to arrange it.
What happens if settlement falls through in NSW?
If settlement does not proceed on the agreed date, the consequences depend on whose fault it is and whether the parties can agree on a new date. Under the standard NSW Contract for Sale of Land (2026 edition), the innocent party may charge penalty interest on the outstanding amount, serve a notice to complete making time of the essence and setting a new settlement date, or, if the other party fails to comply with the notice to complete, terminate the contract and claim damages. If the buyer terminates due to vendor default, the buyer is typically entitled to a full refund of the deposit plus costs. If the vendor terminates due to buyer default, the vendor may be entitled to retain the deposit (up to 10% of the purchase price) and claim damages for any loss beyond that. Always contact your conveyancer immediately if settlement is at risk of falling through.
Can I move into the property on settlement day?
Yes, but only after settlement is confirmed and keys are physically in your hands. Do not arrange removalists for early morning on settlement day -- settlements can be delayed by bank processing times or other factors. Book removalists for the afternoon and treat key collection as the trigger for access. Your conveyancer will notify you as soon as settlement is confirmed.
Sources: Conveyancing Act 1919 (NSW) (legislation.nsw.gov.au); Conveyancing (Sale of Land) Regulation 2022 (NSW) (legislation.nsw.gov.au); PEXA (pexa.com.au). Last reviewed June 2026.
Conveyancing Explained provides general information about property transactions in Australia. It is not legal advice and does not create a client relationship. For advice on your situation, engage a licensed conveyancer, settlement agent, or property solicitor in your state or territory.